The Nigerian Economic Summit Group (NESG) has called on the Federal Government to fast-track the privatisation of state-owned refineries, stressing that doing so would significantly boost domestic oil output and reduce Nigeria’s heavy petroleum import bills.
The recommendation is contained in the organisation’s newly released economic assessment, “NESG 2025 Q3 GDP Alert.”
The advisory comes against the backdrop of a notable slowdown in the refining sector’s growth, which dropped to 5.84% in Q3 2025, a sharp decline from the 20.5% growth recorded in Q2 2025, according to the latest GDP data.
NESG’s call also follows recent reports indicating that the Federal Government is considering the sale of its publicly owned refineries.
The move, according to the federal government, aims to attract private investors, improve efficiency, and enhance competition in the downstream sector currently dominated by the Dangote Refinery.
NESG lauds Nigeria’s domestic refining capacity
Despite the challenges, the NESG report highlights the continued strengthening of Nigeria’s refining capacity and the positive impact of increased local production on the broader economy.
It notes that improved domestic refining remains one of the country’s most viable pathways to reducing import dependence and stabilising foreign exchange pressures.
“The robust growth in the oil refining sector signals improved local refining capacity. These gains are expected to translate into reduced petroleum import bills as the Dangote Refinery continues its operations,” NESG stated.
However, the Group stressed that Nigeria cannot achieve full self-sufficiency in the refining of petroleum products unless the government urgently completes planned reforms in the sector — most critically, the privatisation and commercialisation of the moribund state-owned refineries in Port Harcourt, Warri, and Kaduna.
“To move towards full self-sufficiency in domestic refining, the government should proceed with the planned privatisation of state-owned refineries to restore their functionality as soon as possible,” the NESG noted.
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Additionally, the think tank noted that the federal government’s reforms introduced in mid-2023 have “begun to translate into improved growth outcomes, but these gains remain vulnerable without deeper structural reforms.”
The organisation stated that, although the sustained growth is impressive, “it remains fragile and must be reinforced through reforms that address long-standing bottlenecks.”
The group also lauded the agricultural sector’s performance but noted that there is need for targeted efforts to “address the challenges confronting industry players”.
What you should know
In November, NNPCL said that it is already seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries at international standards.
Earlier in June, the NNPCL officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant.
The refinery was shut down on May 24, 2025, for scheduled repairs of 30 days, but it’s now been over 80 days without any significant activity or commitment under the administration of the new GCEO of NNPCL.
